China to create 10 "mega" coal companies through M&As -report

China aims to create 10 "mega" coal producers by the end of the decade as part of its drive to consolidate the industry and tackle overcapacity, the official China Daily reported on Friday, citing an energy official.Reuters | April 14, 2017, 08:02 IST

Shanghai - China aims to create 10 "mega" coal producers by the end of the decade as part of its drive to consolidate the industry and tackle overcapacity, the official China Daily reported on Friday, citing an energy official.

The association said large-scale state miners, including the Shenhua Group, China's biggest coal producer, are also set to undergo restructuring.

China is in the middle of a programme aimed at tackling price-sapping supply gluts in the coal sector, and aims to shut at least 500 million tonnes of production capacity by the end of the decade, with smaller mines shut or consolidated.

China aims to shut at least 150 million tonnes of coal production capacity this year alone, and the campaign has helped drive up coal prices by more than a quarter since the beginning of the year.